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Smart Grid Heavy Hitter series – SAP’s Stefan Engelhardt

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In this, the second of my Smart Grid Heavy Hitters’ interviews, I talk to SAP’s Head of Industry Business Unit for Utilities, Stefan Engelhardt.

It was a great interview – in it we talked about:

  • Stefan’s definition of a Smart Grid
  • The benefits of Smart Grids to both the utilities and the customers of the utilities
  • The state of Smart Grid rollouts to-date
  • What an ideal Smart Grid would look like
  • What barriers are holding up Smart Grid rollouts
  • Which regions are further along in Smart Grid rollouts and which are lagging behind
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Smart Grid Heavy Hitter series – Oracle’s Guerry Waters

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I decided to run a series of interviews with people deeply involved in the Smart Grid space. I’m calling it the Smart Grid Heavy Hitters series. I will publish a new interview every Thursday until I run out of interviewees (or out of energy – poor pun intended, sorry!).

In this, the first of my Smart Grid Heavy Hitters’ interviews, I talk to Oracle’s VP of Industry Strategy, Guerry Waters.

It was a great interview – in it we talked about:

  • Oracle’s vision of a successful Smart Grid
  • The benefits of Smart Grids
  • The requirements for a successful Smart Grid rollout
  • The impacts of regulations on Smart Grid rollouts
  • Examples of Smart Grids and
  • Oracle’s place in the Smart Grid ecosystem

I’d like to thanks Guerry and Oracle for being such willing participants in this project and Ludovic Leforestier for helping make this interview happen!.

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The day that we see all devices which consume water having networked flow meters is still a ways off

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atr

Photo credit Hypergurl – Tanya Ann

I wrote a post a couple of days ago asking the question How long until all devices which consume water have networked flow meters? after talking to Oracle VP Industry Strategy, Guerry Waters about Oracle’s recently released “Testing the Water: Smart Metering for Water Utilities” study.

Having put the question out there, I’m now going to discuss some of the factors which will influence the answer!

The first thing to realise from the Oracle data is that 76% of homeowners in the US are concerned with the need to conserve water in their community and 71% believe that having access to detailed consumption data would encourage them to take steps to lower their water use. So barring and big PR disasters like the PG&E Smart electricity Meter fiasco in Bakersfield, it would seem that the vast majority of consumers are bought into the idea of having smart meters to help lower water consumption.

How about the utilities? It looks like if they do decide to rollout smart water meters, they’ll very much be pushing an open door.

Funnily enough this is where it starts to get a bit nuanced!

First off, 83% of utilities who have conducted a cost-benefit analysis (n=86) support the adoption of smart meter technology, so that’s a good start, right?

Well, yes, but what are the motivations of the utilities?

It turns out that they are far more interested in using smart meters to enable early leak detection than in supplying customers with tools to monitor/reduce their consumption!

Right away this is problematic, if the aims of the utilities and their customers are not aligned, then this will greatly complicate any rollouts. Also, if the utilities are not strongly focussed on providing consumers with tools to reduce their consumption, any such tools which are provided to homeowners would most likely be sub-optimal (an after-thought).

Then, when asked what they perceived as roadblocks, the water utilities cited the lack of cost recovery or measurable ROI as well as the up-front utility expenses required – in fact, 64% of utilities are not even currently considering a smart meter program!

So, until the water utilities are as enthusiastic to roll out smart meters as their counterparts in the electrical utilities are, then the day that we see all devices which consume water having networked flow meters is still a ways off.

Of course, in the case of the electric utilities, their enthusiasm is certainly not hurt by the amount of recovery act monies being pored into smart grids!

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Ford discusses their Electric Vehicle and smart grid integration plans

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Just before Christmas I had a chat with Ford’s head of battery electric vehicle applications, Greg Frenette. We discussed how Ford has been working with utilities and industry organisations to ready its electric vehicles for deep integration into smart grids.

It was fascinating for me to see just how far Ford have proceeded with their thinking on this.

Here’s the transcript of our conversation.

Tom Raftery: Hi everyone and welcome to GreenMonkTV. My guest in the show today is Greg Frenette. Greg is the Manager of Battery Electric Vehicle Applications for the Ford Motor Company. Greg let’s start of with a bit of historical background. Ford have been looking at electric vehicles for some time now; I think 2005 was when you started looking at electric vehicles and smart grid integration. Were you working on electric vehicles even before that?

Greg Frenette: Oh! Sure, we’ve been working on electric vehicles for over 20 years, in our research organization primarily. And when I say electric, I talk about not only battery electric, but fuel cell electric vehicles. But it was in 2007 when we decided to explore a demonstration fleet of plug-in vehicles, plug-in hybrids that we started thinking very seriously about the integration of those vehicles with the grid and in July 2007 announced a partnership with Southern California Edison, which has since grown to a partnership with about 12 different utilities and industry organizations.

Tom Raftery: What is the basis of that partnership, I mean Southern Cal Edison is a utility company, is it that you are test bedding your electric vehicles to see how they fit in with smart grids or what’s the basis of the partnership?

Greg Frenette: That’s exactly it. We’ve got some very high-fidelity Ford Escape production vehicles that have been modified with Lithium-Ion battery packs and charging systems and we’re really exploring what the interaction of that vehicle with the grid is like. We are trying to get a better understanding of the win-win solutions between industries that’ll be necessary in order to commercialize plug-in hybrids as well as full battery electric vehicles.

Tom Raftery: From the research, what are you guys seeing, how well do electric vehicles, battery electric vehicles — how well do they integrate with smart grids?

Greg Frenette: I think the opportunity is tremendous. With our plug-in Escape fleet of about 21 vehicles that we’ve deployed across North America we’re now in the process of setting up communications and actually demonstrating communications between the vehicles and smart meters which are becoming more and more available today in the market.

So we are finding that whole idea of how a vehicle interfaces with the grid is more than simply plugging it in; there’s an opportunity to communicate and an opportunity for the consumer – automotive consumer, electric consumer to make choices and to communicate those choices back and forth from the vehicle to the grid and vice versa.

I’ll give you an example; if you are sitting in one of our plug-in Escape prototypes, hybrid prototypes, today, what you’d find is if you decided you didn’t want to start charging until the rates are cheaper say around midnight or so you could tell the vehicle don’t charge until then, or if you wanted a full charge by a certain time in order to return home or whatever you could then dictate that, communicate it through the vehicle to a smart meter that would then modulate the charges such a way to meet your needs.

Tom Raftery: Interesting! So you are basically shifting your consumption to match times when electricity is less expensive.

Greg Frenette: You can do that; you can also, though, if you are plugged in and you don’t have a need for a particular charging and you have some freedom flexibility, you can indicate that you are willing to accept interruptible service in order to, again, reduce the cost of charging your vehicle. So that’s just the tip of the iceberg of the, sort of, communications that will become available in vehicles and the, kind of, capability we’ll have to really interact with the grid and dictate how we use energy with vehicles.

Tom Raftery: One of the other issues around integration of Battery Electric Vehicles and smart grids is the billing. So say if I go and visit somebody else, some cousins or some neighbours or some family or something and they live a couple of hours away and I need to charge to get home, can I plug in my vehicle in to their electric outlets and have it billed back to my account, is that — are you working on those kinds of integrations as well?

Greg Frenette: Absolutely! One of the real beauties of Ford partnering with a number of utilities across North America is we are exploring those sorts of scenarios and so this whole idea of mobile billing, how that occurs how it takes place is something we are exploring along with a number of other interface opportunities and challenges that we want to face and work out together.

Tom Raftery: Another issue that people raise around electric vehicles is if an electric vehicle is being charged by a utility who are burning coal are they outputting more CO2 than they would if the same car was running off gas?

Greg Frenette: Well that scenario could certainly present itself. One of the things — one of the opportunities that may present itself in how consumers interact with the grid is you may dictate through your vehicles or through an interface at the meter — you may dictate that you want the greenest form of charging.

In other words you will dictate that you will charge at times when the least the amount of coal is being burnt and perhaps other sources of energy are being made available to the grid. So that sort of thinking is something that we are currently engaged at. At the end of the day, though, the total environmental solution is more than a solution at the tailpipe of the vehicle. It has to be what we call a wells-to-wheels solution, and so the energy industry sees the role, I think, they need to play in helping drive emissions down, helping us really improve the environment together.

Tom Raftery: Okay, one last question Greg. When will I see a Ford Battery Electric Vehicle in the showroom?

Greg Frenette: Well, our current plans, today, call for Ford Transit Connect Battery Electric Vehicles to begin coming off our production line at the end of next year (2010).

The following year, 2011, we are currently scheduled to be putting out a full electric Ford Focus Battery Electric Vehicle and then our plans beyond then, 2012 and beyond, call for a plug-in hybrid, a version of the vehicles that we are currently running in demonstration today. So we are not talking about a long-term reality here; what we are really talking about is vehicles that are currently under design and development and will be deployed out in to the public very shortly.

Tom Raftery: Superb Greg, that’s been fantastic. Thanks for agreeing to come on the show.

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Google Energy to start disrupting the utility industry?

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Google Energy

Photo credit filippo minelli

There is no doubt about it but Google is a disruptive company.

First Google disrupted search, then advertising, then video (with their acquisition of YouTube), and then Office applications with the launch and continued development of Google Apps for Domains. Most recently Google has disrupted the mobile phone industry, first with the launch of their Android operating system and just a couple of days ago with the launch of their Nexus One mobile phone.

What then should we make of Google’s recent creation of a subsidiary called Google Energy LLC and Google Energy’s request to the Federal Energy Regulatory Commission (FERC) to buy and sell electricity on the wholesale market [PDF]?

Given Google has already invested in solar power generation, given further that Google has invested in wind and geothermal power generation technologies (as part of its RE < C project), and given that Google has already launched its first product in the Smart Grid space, Google PowerMeter, should we now expect Google to start disrupting the utility industry as well?

Curious about what all this meant I contacted Google spokesperson Niki Fenwick to try to get some answers – see my questions and her responses below:

TR: What was the thinking behind Google’s setting up Google Energy? Why is Google applying to the FERC for permission to trade in electricity?

NF: Google is interested in procuring more renewable energy as part of our carbon neutrality commitment, and the ability to buy and sell energy on the wholesale market could give us more flexibility in doing so. We made this filing so we can have more flexibility in procuring power for Google’s own operations, including our data centers.

TR: Google has made some investments in renewable generation (solar, geothermal and wind), does Google hope to take on the utilities by selling electricity? How does this tie into Google’s PowerMeter project?

NF: This move does not signal our intent to operate as a retail provider and is not related to our free Google PowerMeter home energy monitoring software. We simply want to have the flexibility to explore various renewable energy purchase and sale agreements (that means we can buy electricity wholesale, rather than through a utility).

TR: Will Google Energy be used to develop more Smart Grid products?

NF: We don’t have any plans to announce at this time.

TR: How does this tie into Google’s partnership with GE?

NF: This move isn’t related to our partnership with GE.

So there you have it, according to Google this application to trade in electricity on the wholesale market is simply to gain more flexibility in procuring power for Google’s own operations, as part of Google’s carbon neutrality commitment.

Google have no plans to become a retail electricity provider.

For now. Things change.

After all, it is not so long ago that Google were denying rumours that they were developing a Google phone!

Related articles:

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15 Green Predictions for 2010

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Looking into my crystal ball

Photo credit seanmcgrath

It is the end of the year – that time of year when everyone rolls out their X Predictions for 2010 post and, in that regard, GreenMonk is not going to be any different!

Well , maybe slightly different, some of the following predictions are more like hopes and aspirations on my part than likely outcomes!

  1. There will be an increasing emphasis on sustainability initiatives as organisations understand their financial benefits
  2. CSR reporting will become mandatory for large companies in the EU
  3. Companies will more and more look to IT to help them with their energy efficiency programs
  4. An heightened legislative emphasis on carbon reporting will spur the development of more carbon reporting software
  5. There will be greater and greater integration of carbon reporting functionality into ERP and financial reporting applications
  6. Standards will be agreed for energy and water footprint labels for products and services
  7. Water and energy footprint labels will be made mandatory in the EU
  8. At least one smart grid rollout in the US will fail spectacularly due, in large part, to poor stakeholder communications
  9. More and more Smart City initiatives will come on stream as cities aim to become more sustainable
  10. Mainstream car manufacturers will start to release plug-in hybrid and electric vehicles
  11. At least one major mobile phone handset manufacturer rolls out mobile phones with built-in environmental sensors (for crowd-sourced environmental data viewable in realtime with an Augmented Reality browser)
  12. Bluefin tuna stocks will crash in the atlantic
  13. It will be a record year for ice loss in the Arctic, Antarctic and Greenland Ice Sheets
  14. It will be a record year for damage from hurricanes in the Atlantic and typhoons in the Pacific
  15. 2010 will be the warmest year on record due to the combined influence of El Niño and global warming

    16. and a bonus prediction for good luck:

  16. The US will finally pass climate legislation limiting CO2 emissions (but it won’t go far enough!)
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PG&E smart meter communication failure – lessons for the rest of us

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See no evil, hear no evil

What we have got here is a failure to communicate

The famous line from legendary movie Cool Hand Luke is the first thing that comes to mind when one hears about the fiasco which PG&E’s smart meter rollout in Bakersfield Ca. has become.

From the report on the SmartMeters.com site:

a class-action lawsuit has been filed representing thousands that will demand damages from the utility and third-parties also involved in the $2.2 billion project.

Bakersfield residents believe their new smart meters are malfunctioning because their bills are much higher than before. PG&E claims higher bills are due to rate hikes, an unusually warm summer, and customers not shifting demand to off-peak times when rates are lower.

This has to be a huge embarrassment for PG&E and their partners who are spending $2.2 billion on this project.

So what has gone wrong?

A recent report in the New York Times raises speculation that the meters themselves are to blame:

Elizabeth Keogh, a retired social worker in Bakersfield, Calif., who describes herself as “a bit chintzy,” has created a spreadsheet with 26 years of electric bills for her modest house. She decided that her new meter was running too fast.

Ms. Keogh reported to the utility that the meter recorded 646 kilowatt-hours in July, for which she paid $66.50; last year it was 474 kilowatt-hours, or $43.37.

At a hearing in October organized by her state senator, Ms. Keogh took out two rolls of toilet paper — one new, one half used up — and rolled them down the aisle, showing how one turned faster than the other. “Something is wrong here,” she said.

Scores of electric customers with similar complaints have turned out at similar hearings. At one in Fresno, Calif., Leo Margosian, a retired investigator, testified that the new meter logged the consumption of his two-bedroom townhouse at 791 kilowatt-hours in July, up from 236 a year earlier. And he had recently insulated his attic and installed new windows, Mr. Margosian said.

I spoke to good friend and fellow Enterprise Irregular Jeff Nolan earlier today after I saw him Tweet:

yeah I’m actually pretty pissed, PG&E installed a so called “smart meter” and my utility bill increased $300.

It seems Jeff was having the same problem and his bill was also up significantly over the same month last year.

There are a number of problems here – all to do with transparency and communication.

If, as PG&E say, this is because of “customers not shifting demand to off-peak times when rates are lower”, then it follows that PG&E have either failed to communicate the value of shifting demand or the time when rates are lower.

One of the advantages of a smart grid is that the two way flow of information will allow utilities to alert customers to real-time electricity pricing via an in-home display. PG&E have not rolled out in-home displays with their smart meters, presumably for cost reasons. If they lose the class-action law suit, that may turn out to have been an unwise decision.

Even worse though, in a further post on Twitter, Jeff said:

I’m waited for PG&E to put up the daily usage numbers, I won’t get those until next month for some unexplained reason

This defies belief, frankly.

It seems that PG&E’s smart grid rollout is woefully under-resourced at the back-end. What PG&E should have is a system where customers can see their electrical consumption in real-time (on their phone, on their computer, on their in-home display, etc.) but also, in the same way that credit card companies contact me if purchasing goes out of my normal pattern, PG&E should have a system in place to contact customers whose bills are going seriously out of kilter. Preferably a system which alerts people in realtime if they are consuming too much electricity when the price is high, through their in-home display, via sms,Twitter DM, whatever.

Jeff himself likened this situation to the e-voting debacle where the lack of transparency around the e-voting machines meant the whole process collapsed. In the same way, a lack of open standards around smart meters means we can only trust the smart meter manufacturers and utilities when they tell us that they are operating honestly. That is unlikely to fly.

This debacle has massive implications, not just for PG&E’s $2.2 billion smart meter rollout, but for smart meter projects the world over.

Transparency and communications failures can lead to utilities being sued by their customers, as we have seen with the PG&E example. Not a desirable situation for any company. The PR fallout from the Bakersfield rollout means PG&E will have a much harder time convincing other customers to sign up for smart meters and may potentially set back smart grid projects in California for years.

You should follow me on twitter here.

Photo credit svale

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Guido Bartels of GridWise and IBM discusses Smart Grids with GreenMonk

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High Voltage power line

Photo credit Ian Muttoo

Guido Bartels is General Manager of IBM’s Global Energy and Utilities Industry. Guido leads IBM’s corporate initiative around building an ‘Intelligent Utility Network,’ IBM’s portfolio of offerings and capabilities for the Smart Grid.

Guido is also a member of the Electricity Advisory Committee at Department of Energy, an organization whose mission is to

provide advice to the U.S. Department of Energy in implementing the Energy Policy Act of 2005, executing the Energy Independence and Security Act of 2007, and modernizing the nation’s electricity delivery infrastructure

And Guido holds the position of Chairman at GridWise Alliance, the US Smart Grid industry association.

[audio:http://media.libsyn.com/media/redmonk/GuidoBartels.mp3]

I invited Guido onto the show to discuss the current state of Smart Grid roll-outs globally and I asked him, amongst others, the following questions:

Define what is a smart grid (there are a lot of definitions out there!)

Why do we need them? What are the benefits of smart grid?

What is your vision of what the ideal Smart Grid rollout would be?

and what would be necessary to achieve it.

What differences are there in global geographies?

Are regulationss affecting rollout?

Can you point to any good smart grid rollouts?

Download the entire interview here
(12.7mb mp3)

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US Smart Grid future looking bright?

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Barack Obama in shades

Photo credit Barack Obama

President Barack Obama was in Florida on Tuesday this week for the official opening of Florida Power and Light’s new solar energy power plant. The 90,000+ solar panel plant, which has been installed across 180 acres of the 5,000 acre FPL property, is expected to generate 25MW of clean electricity (enough to power 3,000 homes) making it the largest operating solar power plant in the US.

President Obama took the opportunity to announce (slightly sooner than was expected) the awarding of $3.4 billion in investment grants to help spur the transition to smart grids in the US.

According to theReuters report:

The grants, which range from $400,000 to $200 million, will go to 100 companies, utilities, manufacturers, cities and other partners in 49 states — every state except Alaska….

The winning companies have secured an additional $4.7 billion in private money to match their government grants, creating $8.1 billion in total investment in the smart grid.

Full listings of the grant awards by category and state are available here and here.  A map of the awards is available here.

The announcement includes:

  • $1 billion for smart meters and in-home display technologies
  • $400 million for grid modernization projects to make electricity distribution and transmission more efficient with digital monitoring and increased grid automation
  • $2 billion, the bulk of the monies, is going to projects which help integrate all the various components of smart grids so they can interoperate seamlessly and
  • $25 million to help expand the manufacturing base of companies that can produce the smart meters, smart appliances, synchrophasors, smart transformers, and other components for smart grid systems

And some of the outcomes of the awards will be:

  • Will put the US on pace to deploy more than 40 million smart meters in American homes and businesses over the next few years
  • Install more than 1 million in-home displays, 170,000 smart thermostats, and 175,000 other load control devices to enable consumers to reduce their energy use. Funding will also help expand the market for smart washers, dryers, and dishwashers, so that American consumers can further control their energy use and lower their electricity bills.
  • Install more than 200,000 smart transformers that will make it possible for power companies to replace units before they fail thus saving money and reducing power outages
  • Install more than 850 sensors – called ‘Phasor Measurement Units’ – that will cover 100 percent of the U.S. electric grid and make it possible for grid operators to better monitor grid conditions and prevent minor disturbances in the electrical system from cascading into local or regional power outages or blackouts. This monitoring ability will also help the grid to incorporate large blocks of intermittent renewable energy, like wind and solar power, to take advantage of clean energy resources when they are available and make adjustments when they’re not.
  • Install almost 700 automated substations, representing about 5 percent of the nation’s total that will make it possible for power companies to respond faster and more effectively to restore service when bad weather knocks down power lines or causes electricity disruptions.
  • Reduce peak electricity demand by more than 1400 MW, which is the equivalent of several larger power plants and can save ratepayers more than $1.5 billion in capital costs and help lower utility bills. Since peak electricity is the most expensive energy – and requires the use of standby power generation plants – the economic and environmental savings for even a small reduction are significant. In fact, some of the power plants for meeting peak demand operate for only a few hundred hours a year, which means the power they generate can be 5-10 times more expensive than the average price per kilowatt hour paid by most consumers
  • Put the US on a path to get 20% or more of its energy from renewable sources by 2020.

Those are some pretty impressive numbers and they should go a long way towards helping the US modernise its ageing electricity distribution system, facilitating the greater penetration of renewable power suppliers onto the grid and thereby reducing America’s enormous carbon footprint!

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Green Numbers round-up 10/30/2009

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Posted from Diigo. The rest of my favorite links are here.